Health Stocks in Motion
Updated from 3:13 p.m. EST
Shares of
Radiation Therapy Services
(RTSX)
were among the best-performing health-related stocks Tuesday, rising 11.8% after the company amended its credit facility.
The company, which operates radiation therapy centers, said that its term loan has been expanded to $35 million from $25 million, and its $80 million revolving credit line has been upped to $140 million. At the same time, the interest rate spreads on the term loan and revolver were reduced by 25 basis points overall. As a result of the amendment, Radiation Therapy now has $120.6 million in available credit, up from $48.9 million. "We are pleased to strengthen our financial flexibility with these amendments, providing additional access to the capital that supports our acquisitions," the company said. Shares traded up $2.09 to $19.74.
Despite posting third-quarter earnings that matched expectations and announcing an expansion of its stock repurchase plan,
Biomet
(BMET)
saw its shares fall almost 4% on Tuesday. Excluding items, the company earned $101.6 million, or 40 cents a share, on sales of $482 million. Analysts polled by Thomson First Call expected earnings of 40 cents a share on sales of $481.2 million. A year ago the company earned $86.6 million, or 34 cents a share, on sales of $410.2 million. Additionally, the company upped its share repurchase plan by $100 million, bringing its total repurchase plan to $200 million. Looking ahead, Biomet said it remains comfortable with analysts' fourth-quarter expectations. The company expects to post earnings of 42 cents to 44 cents a share on sales of $503 million to $530 million. Analysts are expecting earnings of 44 cents a share on sales of $522.2 million. Shares were trading down $1.20 to $39.05.
Shares of
OSI Pharmaceuticals
(OSIP)
fell modestly after the company's cancer treatment Tarceva received Swiss regulatory approval. The Swiss health authority, Swissmedic, approved Tarceva for use in patients with locally advanced or metastatic non-small cell lung cancer who failed to respond to at least one prior chemotherapy treatment. OSI received U.S. approval for Tarceva in November 2004. OSI said that it and its partners
Genentech
(DNA)
and
Roche
look forward to executing a postapproval development plan, which will include the study of Tarceva in earlier stage lung cancer patients, patients with other tumor types and combinations with other targeted therapies. Shares of OSI traded down 39 cents to $45.23.
Chindex International
(CHDX)
fell 12.9% after the supplier of Western health care products and services to China agreed to sell 1.08 million shares of stock in a private placement for about $6.5 million. Chindex also issued warrants to buy an additional 378,000 shares of stock at an exercise price of $9.10 a share. The company plans to use the proceeds from the sale to repay certain vendor financing and for working capital purposes. Shares traded down 95 cents to $6.43.
Shares of
Wyeth
(WYE)
rose 3.8% after the drugmaker said that first-quarter earnings would come in above expectations. The company expects pro forma earnings to be in the mid- to upper 70-cent range or higher. Strong performance of several key brands and favorable exchange rates led to the solid outlook. Analysts had been expecting earnings of 67 cents a share on sales of $4.37 billion. Looking ahead, Wyeth reaffirmed its 2005 earnings outlook, saying that it expects pro forma earnings of $2.70 to $2.80 a share. Analysts are expecting earnings of $2.75 a share. Finally, Wyeth warned that third-quarter pro forma earnings could come in below last year's results and below analysts' estimates because of its planned increase in research and development spending. Analysts are looking for third-quarter earnings of 67 cents a share. Shares traded up $1.49 to $40.40.
Other health care movers included
Pfizer
(PFE) - Get Report
, down 29 cents to $25.42;
Elan
(ELN)
, down 5 cents to $7.28;
Bristol-Myers Squibb
(BMY) - Get Report
, up 49 cents to $24.71;
Merck
(MRK) - Get Report
, up 14 cents to $31.98;
Biogen Idec
(BIIB) - Get Report
, down 17 cents to $38.10;
Amgen
(AMGN) - Get Report
, up 11 cents to $58.18;
Schering-Plough
(SGP)
, up 26 cents to $17.94; and
Aastrom Biosciences
(ASTM)
, up 9 cents to $2.40.